Last year was the year of artificial intelligence (AI). But AI wasn't the only technology that made waves. With the advent of innovations like Faux OOH (FOOH) and improved campaign measurement and data analytics capabilities, OOH will see a huge influx of investment in 2023.
With global OOH spending expected to surpass the magical $40 billion mark this year, we offer an overview of the top 5 trends, that advertisers should follow:
OOH through the eyes of artificial intelligence
The OOH industry is undergoing a remarkable shift thanks to AI, which is literally making it easier to create engaging brand experiences and changing the way consumers interact with campaigns. This technology isn't just a fad; it's already making outdoor advertising more precise, personalized, and effective.
For example, generative AI can automate the approach to campaign planning by identifying the optimal formats and placements to reach the desired audience. In addition, it facilitates rapid analysis of available consumer data and helps build audience movement models.
AI can also enhance programmatic DOOH (pDOOH) through hyperlocalization, tailoring messages to specific geographic areas and responding in real time to time of day, weather, or cultural and regional events.
However, it is important to note that artificial intelligence is in its infancy and is far from limitless.
While AI makes the job of developing campaigns easier, it fails to adequately account for brand strategy. The lack of big and quality data can limit the usefulness of the technology for necessary data analysis.Agencies that use AI should do so pragmatically and still leverage the human factor of strategic and creative approaches.
OOH is increasingly reaching customers across Funnel
Out-of-Home advertising today has gone beyond its "set" traditional role of raising brand awareness: in fact, it is now a medium that can engage customers across the entire marketing funnel, which is excellent in terms of an expanded opportunity to increase campaign results.
OOH has opportunities to influence consumers throughout the funnel process: from attracting them to guiding them when considering a purchase, triggering conversions and promoting the brand.
OAAA's 2023 survey shows that among consumers surveyed, 65% took action (e.g., visiting a store) after seeing a digital billboard ad, and 52% took action on a mobile device, such as visiting a website, taking advantage of a discount, or making a purchase directly.
Today's advertisers are hungry for accurate measurement of results. OOH and attribution metrics have evolved to accurately determine the impact of media placement on direct business results. This integration allows advertisers to create reports that reinforce traditional or digital campaigns, making OOH indispensable for the performance era.
The customer is looking for a brand experience
OOH has the potential to offer customers authentic brand experiences that go beyond traditional digital advertising.
According to the OAAA report, OOH's uniquely engaging nature helps it achieve the highest ad recall of all core media, and traditional and digital billboards elicit 61% favorable responses from U.S. consumers, more than any other competing channel.
Kantar's Media Responses 2023 study says that OOH provides an excellent opportunity for brands to access the full range of experiences and entertainment offered by media channels.
These findings show that OOH has potential:
- build trust
- connect with relevant audiences
- differentiate brands from competitors
- foster customer loyalty
- align with modern values
- increase overall engagement.
The OAAA details that 86% of adults reported making a vehicle trip in the past 30 days and 56% reported walking in the downtown area. From 2022 to 2023, U.S. air travel also grew by more than 10% and transit ridership increased by 13.6%.
In short, OOH campaigns are fulfilling a necessary desire for engaging and exciting advertising experiences among consumers who increasingly travel to OOH hotspots for work and leisure. And not only there.
Brand experiences: virtual?
OOH today is undergoing a major transformation with the advent of fake OOH (FOOH), which is supported by the use of computer-generated imagery (CGI).
Evidenced by viral videos going viral on social media, FOOH turns static billboards, digital screens and posters into dynamic, immersive experiences. This evolution is expanding the horizons of brand storytelling, thriving in synergy with mobile devices.
A great example is Maybelline's 2023 "Sky High Mascara" campaign, which depicts oversized digital mascara and lashes on the London Underground. This ad quickly went viral on social media, boosting sales and inspiring campaigns for Kylie Cosmetics, North Face and McDonald's.
However, while the potential of FOOH is remarkable, there are also controversies that it may raise in terms of paid media spaces, authenticity and legality.
Some critics in the industry question the ethical legitimacy of FOOH. They wonder what constitutes "real" OOH and whether consumers can distinguish between authentic and simulated outdoor experiences. Legal and financial factors must also be taken into account.
Although FOOH can increase buzz and traffic for brands on social media, it lacks the authenticity and genuine experience of traditional OOH, two factors that make outdoor advertising highly trusted by consumers.
Sustainability
The OOH industry is changing in response to growing consumer interest in sustainability. Brands are aligning their outdoor strategies with environmental initiatives, using eco-friendly materials, LED lighting and solar power.
Mixing eco-friendly elements into OOH campaigns not only contributes to environmental protection, but also strengthens the bond with consumers who are increasingly embracing these sustainable values.
Consumer focus on sustainability goes beyond short-term trends and becomes a key aspect of brand loyalty. Advertisers need to be authentic in this environment, as greenwashing practices can erode trust.
But here, OOH media owners are also crucial in promoting sustainable advertising through implementation:
- responsible energy consumption
- use of refurbished materials
- efficient supply chain management; and
- environmentally conscious projects that benefit communities.
Their commitment to meeting the needs of consumers and brands underscores the evolution of the entire industry towards a greener consciousness.
Outlook for the future
We are already seeing signs that the future of OOH is exciting. With innovative technologies such as AI and augmented reality, the reinvigoration of personal brand experiences, and a focus on sustainability, outdoor advertising is poised to captivate audiences across the marketing funnel and cement its position as a dynamic and influential medium in global advertising.
Source: Advertisingweek.com, Jaime Byrdak, Head of Media, Billups
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